Analysts financial report on annual report of Treatt plc (LON: TET)
Last week you might have seen that Treatt plc (LON: TET) released its annual result to the market. The initial response was not positive, with stocks falling 6.5% to UK £ 10.85 last week. The result was overall positive – although revenue of £ 124million was in line with analysts’ expectations, Treatt surprised with a statutory profit of £ 0.25 per share, slightly above expectations. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or whether there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
See our latest review for Treatt
Based on the latest results, the most recent consensus for Treatt of four analysts is for 2022 revenue of £ 131.1million, which if achieved would represent a credible increase of 5. 4% of its sales in the last 12 months. Earnings per share are expected to rise 6.3% to UK £ 0.27. Prior to this earnings report, analysts were forecasting revenue of £ 131.1million and earnings per share (EPS) of £ 0.27 in 2022. So it’s pretty clear that, although analysts have put To update their estimates, there has been no major change in expectations for the company as a result of the latest results.
Analysts have reconfirmed their price target of UK £ 12.89, showing that activity is going well and is in line with expectations. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. There are a few variations of perception on Treatt, with the most bullish analyst valuing it at UK £ 14.00 and the most bearish at £ 12.08 per share. The narrowness of the estimates could suggest that the company’s future is relatively easy to gauge, or that analysts have a solid view of its prospects.
These estimates are interesting, but it may be useful to paint a few broader strokes when comparing the forecast, both to Treatt’s past performance and to that of its peers in the same industry. The period through the end of 2022 brings more of the same, analysts said, with revenue forecast to show growth of 5.4% on an annualized basis. This corresponds to its annual growth of 4.8% over the past five years. Compare that to our data, which suggests other companies (with analyst coverage) in the industry are expected to see their revenues grow 4.9% per year. So while Treatt is expected to maintain its rate of revenue growth, it is only growing at about the pace of the industry as a whole.
The bottom line
The most important thing to remember is that there has been no major change in sentiment, with analysts once again confirming that the company is performing according to their previous earnings per share estimates. Fortunately, there has been no real change in the sales forecast, with activity still expected to grow in line with the industry as a whole. The consensus price target has not really changed, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
Continuing on from this reflection, we believe that the company’s long-term outlook is much more relevant than next year’s results. At Simply Wall St, we have a full range of analyst estimates for Treatt through 2024, and you can view them for free on our platform here.
In addition, you should also educate yourself about the 1 warning sign we spotted with Treatt.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.